Urban Sprawl and the Public Provision of Fire Suppression

Population growth in the wildland urban interface (WUI) has put a greater number of houses at risk due to wildfire while often straining the resources of fire suppression agencies and contributing to a dramatic increase in wildfire suppression expenditures. In light of these facts, this paper analyzes the consequences of the public provision of fire suppression in a monocentric city where wildfire risk is endogenously determined through the choice of where to live. Public provision leads to increased development in the WUI, higher suppression costs, and an overall decrease in welfare. Differentiated taxes based on fire risk could reduce sprawl, improve welfare and lower suppression costs.